Is Apple Killing iPhone X To Give Life To Low-cost iPhone X?

Apple might cancel its biggest flagship so far – the iPhone X, to make way for the younger but more promising sibling. If the trusted analyst Ming-Chi Kuo of KGI Securities is to be believed then the Cupertino, California-based company has stumbled upon the idea of manufacturing an iPhone X-inspired entry-level model at just $550. If it’s true, it will be a massive win for all those waiting for the price to drop to get their beloved smartphone.

Kuo’s report (via MacRumors) notes that the new low-cost iPhone X not only looks like the Apple iPhone X, but the screen size is also more significant at 6.1-inches. To bring down the cost, however, Apple has reportedly watered down some of the features. For instance, it has replaced the OLED panel with an LCD display and a single rear camera. Also, stainless steel used in the latest flagship could be swapped by Aluminum Chassis.

Kuo believes that the low-cost iPhone X would be the best-selling device from Apple, and could account for 65% to 75% of iPhones sold in the upcoming cycle.

Asian users are fond of dual-SIM phones, and this time, Apple might pay heed to their requirements. However, the dual-SIM model would be priced a little higher than the single sim model. In his note, Kuo says that if “the [double-SIM] model sells for US$650-750, the single-SIM model may sell for US$550-650.”

The arrival of low-cost iPhone X could mean that the original handset would be out of the game, and some analysts are already putting their money on that. Mirabaud Securities – Analyst Neil Campling, in a research note says that “iPhone X is dead” basing his argument on the status of Taiwan Semiconductor Manufacturing. TSMC, the biggest semiconductor supplier in the world and a top supplier to Apple, is witnessing the oversupply of chips, says Campling, who tracked company’s inventory data for more than a decade.

In his note (via CNBC), the analyst says TSMC’s chip pile is growing because Apple has turned its back on the supplier by not buying components for the future iPhone X models. This, according to Campling, suggests the end of the iPhone X.

Campling may be true, but one cannot deny the thought that it is too early to say goodbye to the iPhone X. Agreed that iPhone X’s premium pricing has been a letdown for many, but the iPhone maker never intends to make the device affordable for everyone. Meanwhile, analysts like Patrick Moorhead of Moor Insights & Strategy told CNBC that Apple might come up with an update to iPhone X, but would not kill it.

Separately, going by Apple’s likely strategy for iPhone release, there might be an iPhone SE 2 coming in May. According to Japanese site Macotakara, the iPhone SE 2 would have improved processor.

Certainly, more iPhones in different price segments is happy news for the users. However, Apple would not want to do away with the iPhone X so soon, especially when Counterpoint Research reveals that the iPhone X captured 35% of the smartphone market’s profits during the fourth-quarter.

Aman is MBA (Finance) with an experience on both marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.